This CPE course covers risk management. It examines the key principles of enterprise risk management (ERM) as well as the formulation and features of a risk management strategy. The course looks at ways to identify, measure, and assess risks and explains the practice of risk mapping. It then investigates the formulation of a strategy to respond to risks, the general methods that can be used to treat risks and the implementation of such strategy. It shows how areas of risk management can be visualized as a risk cube, and explores methods of risk reporting. The course goes on to define gross and net risk, and address evaluation of the established risk management strategy. It finally identifies the risk management roles of an organization’s executives and employees, and provides real-world scenarios for consultation.
▪ Select the appropriate response to identified risks
▪ Recognize techniques to enable the board and senior management to discharge their responsibilities related to managing risks and reporting risks to stakeholders
▪ Identify management roles and responsibilities related to risk
▪ Quantification of risk exposures (impact if an adverse event occurs) and their expected values, taking account of likelihood.
▪ Risk map representation of risk exposures as a basis of reporting and analyzing risks.
▪ Enterprise risk management and its components.
▪ Risk mitigation including TARA – transfer, avoid, reduce, accept.
▪ Gross and net risks.
▪ Assurance mapping and similar techniques for describing risks and their associated responses.
▪ Risk register.
▪ Risk reports and stakeholder responses.
▪ Quantification of risk exposures, their sensitivities to changes in external conditions and their expected values.
▪ Value at risk.
CGMA exam candidates
Management accountants wanting to develop skills in governance and risk management
Management accounting experience or the equivalent.